Effects of stock rebuilding – A computable general equilibrium analysis for a mackerel fishery in Korea

We evaluate the effects of rebuilding a mackerel fishery in Korea using a bioeconomic computable general equilibrium (CGE) model. The effects include three different measures of the benefits of the stock rebuilding—the fishing sector’s rent, its value-added, and the aggregate regional welfare. In the baseline simulation, we run 20 scenarios over 30 years, depending on the magnitude of the annual percentage reduction in the harvest required to recover the stock to the target level (Bmsy). We find that the percentage reductions that yield the largest increase in the three measures of the benefits are 70% (yielding the largest rent increase), 35% (yielding the largest value-added increase), and 20% (yielding the largest aggregate welfare gain), respectively, to rebuild the stock to the target level. Results shed some light on which measure the policymakers should use when implementing a stock rebuilding policy.